ZMR Capital continues to expand its Dallas multifamily portfolio with the acquisition of Chimney Hill, a 240-unit gated community in the North Dallas submarket of Richardson.
Since entering the Dallas market in 2019, the Tampa, Florida-based real estate investment firm, formerly Berkshire Property Holdings, has grown its local multifamily portfolio to 1,100 units. In September, it acquired a two-property, 568-unit portfolio in Richardson for $56.8 million.
“One of our primary investment goals is to significantly increase the size of our portfolio in Dallas over the next 24 months, so we can take advantage of economies of scale to create value for our residents and investors,” said ZMR CEO and co-founder Zamir Kazi.
Chimney Hill features one-, two-, and three-bedroom floor plans in 11 two-story buildings. ZMR Capital plans to improve upon the seller’s in-place unit renovation program with the addition of new appliances, including in-unit washers and dryers; tile backsplashes; vinyl plank flooring; and new fixtures and cabinet fronts. It also will make improvements to the common areas, including the swimming pool and lounge area, the dog park, picnic and grill stations, the cybercafé, and the fitness studio.
According to the firm, the Dallas rental market has remained relatively strong throughout the pandemic, particularly in the northern suburbs where more than 20,000 apartment units have been delivered to keep up with demand. Citing a report from Marcus & Millichap, of those units, only 398 were in Richardson.
“With no new product planned for the next 12 months, the demand/supply imbalance in the Richardson submarket should continue for some time,” added Kazi. “This bodes well for continued occupancy growth where the five-year average is already at nearly 94%.”
ZMR Capital leveraged the acquisition with three-year financing from a non-bank real estate lender, arranged by CBRE Capital Markets vice chairman and managing director Brian Eisendrath.